NEW YORK: Gold slipped slightly in brisk trade on Wednesday after the US Federal Reserve issued its latest policy statement, repeating its accommodative stance while extending it another two years, but gains in the euro provided support for the precious metal.
The latest communique said the Federal Reserve would keep to its plan to stimulate the US economy with large-scale bond purchases despite data indicating improved growth. But, policy makers would monitor risks posed by their policies, as well as their progress in lowering unemployment.
While gold prices fell somewhat following the release, they mostly held within a narrow trading range, underpinned by strength in the euro currency.
"To me it looks neutral for gold. It's still a little bit on the defensive, but there is not a big argument from the (Fed) statement for gold to drop," said James Steel, chief commodities analyst at HSBC in New York.
Spot gold as changing hands around $1,606 per ounce by 3:41 p.m. EDT (1941 GMT), down 0.42 percent. US gold futures for April delivery were off 0.36 percent at $1,605.50, after settling $1,607.50 per ounce.
Gold had eased from the previous session's three-week high, reflecting some investor optimism that the crisis in Cyprus may not spread further in the euro zone.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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